Octara

DataTrak

Optimizing Maintenance Tactics Session 1 Introducing Maintenance Tactics April/May 2013

Ben Stevens www.datatrak.ca Stevensb@kingston.net

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DataTrak

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Agenda
1. 2. 3. 4. What is a Strategy? What is a Tactic? Practical Implications of Selecting Tactics Why do we care about Tactics How Maintenance Tactics can be put into practice

The Objective of Maintenance?

Reliability Availability Maintainability?

To add value to the Organization

Asset Managements Goal is. to add value

Ensuring that the asset base for Plant, Fleet and Facilities is optimized for
Availability
Reliability Maintainability

Maximum uptime for planned use

Best repair / replace decisions Minimise downtime from repair

Productive Value

Optimise value over asset life-cycle

Your strategy and tactics must support this

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A Maintenance Strategy

Guides us in the right overall direction To support the organizations goals In producing the organizations targeted (and promised) output Within the operating and budget constraints of the organization. And to help us define the right tactics
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Maintenance Tactics - What are they? We are in business to Our strategy is to introduce modern ideas and technologies to increase reliability

Mission

Strategy

Plan

The maintenance plan consists of a blend of the best tactics for each equipment We will use PM, PdM, RTF, Corrective.
Our daily activities will be.
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Tactics

Activities

How does it all relate?

1. Maintenance Strategy Best Practices 2. Maintenance Strategy Drivers 3. Maintenance Tactics Best Practices 4. Maintenance Activities and Tasks
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Organizations Mission Organizations Objectives Department Objectives Operations Objectives Maintenance Objectives

Maintenance Strategy Maintenance Tactics

Job Plan

Maintenance Policies Maintenance Targets

Work Orders Activities, Tasks

Results

The Excellence Cube

Continuous Improvement
Data

Reliability

Autonomous Maintenance

Control

Materials

Tactics Measures Work

Strategy

Management

Leadership

CBM

PdM

PM

Run to Failure

Repair

Refine, develop Current status new (CM) tactics

Data: Content, Quality and Collection Expectations (RCM) Predictive (EXAKT) Analysis, Diagnosis (SpotLight) Data Feedback and update

The Right Information To do the Right Job At the Right Time

Plan the tactics

CMMS Maintenance Plan

DCS, Equipment And Parts Selection and Design

Measure, Evaluate the results

Execute the tactics

Work Execution

Performance Management System

Improved Maintenance Performance, Improved Operating Performance

Improved Reliability

Reliability Centred Knowledge Solution

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The Anatomy of a CMMS/EAM

Inspection Work Request Corrective Condition Based PM Time Based PM Breakdown Check Tools Availability Contractors Availability Maintenance Plan
Analyse Data Work History Asset Mgmt

Plan the tactics

Equipment

Measure, Evaluate results

HR

Refine, develop new tactics

Execute tactics

Labour & Materials Contractors and Tools

Costs and Documents

Best Practices

Collect Data Work Order

Asset Valuation
Complete Work

Schedule and Issue WO Issue Picklist, Issue Materials

Check Labour Availability Equipment Availability Check Materials Availability

Accounts Payable

Trigger Purchase Requisition

Materials Receipt
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Trigger Purchase Order

DataTrak

Octara 2013 DataTrak Copyright

Agenda
1. 2. 3. 4. What is a Strategy? What is a Tactic? Practical Implications of Selecting Tactics Why do we care about Tactics How Maintenance Tactics can be put into practice

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Choose the Right Tactics

Equipment runs smoothly = fewer breakdowns Maintenance staff work more consistently = fewer panics Parts are more readily available = fewer delays, fewer waiting for parts Operations are happier = fewer missed output targets
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Who chooses the Tactics?

And what criteria are used
1. 2. 3. 4. We always do it that way Manufacturers recommendations Reliability Engineer Select according to type and cost of failure versus cost of prevention
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Workshop
Using the wrong tactics causes problems:
List them (look for the chain of effects behind the problems)

Prioritise them

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Problems caused by wrong tactics

More downtime = lost production = no shipments = no revenue = lower profit More breakdowns = higher repair labour costs + higher spares consumption = lower profit More emergencies = more overtime = higher cost = lower profit Less smooth equipment operation = shorter asset lifetime = higher capital cost = lower profit HSE impact = higher emissions and waste + higher employee risk = lower profit
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DataTrak

Octara 2013 DataTrak Copyright

Agenda
1. 2. 3. 4. What is a Strategy? What is a Tactic? Practical Implications of Selecting Tactics Why do we care about Tactics How Maintenance Tactics can be put into practice

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Why do we care about Tactics?

Cost Maintenance Effectiveness Asset value Revenue consistency Safety Environmental Protection

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Case Study

Do we need to use the Best Tactics? Typical Maintenance Work Processes

TOTAL Work 100%
PLANNED 30% UNPLANNED 70%

PdM/PM 10%

Corrective 20%

Corrective 30%

Breakdown 40%
Urgent 20%

Emergency 20%

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Case Study

Benchmark Maintenance Work Processes

TOTAL 100%
PLANNED 80% UNPLANNED 20%

30%

70%

PdM/PM 45%

Corrective 35%

Corrective 15%

Breakdown 5%
Urgent 4%

40%

Emergency 1%

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Case Study

Putting a value on Best Selection of Maintenance Tactics - 1

Example: 1. Assume the distribution of Maintenance is 30% Planned and PM, 30% Unplanned Corrective and 40% Breakdown. 2. Assume that the ratio of effort and cost is 1 to 1.5 to 3 3. Then for a $100k spend, the cost distribution is:
Tactic Planned and PMs Unplanned Corrective % of Total 30% 30% Cost Ratio 1 1.5 % x Cost = Units of work 30 45 Cost $ $15,360 $23,040

Breakdowns
Total

40%
100%

120
195

$61,600
$100,000

That represents 195 units of work @ $512 per unit.

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Case Study

Putting a value on Best Selection of Maintenance Tactics -2

By increasing the Planned/PM from 30% to 80%
Tactic
Planned and PMs

% of Total
80%

Cost Ratio
1

Activity Units
80

Cost $
$41,000

30
15% 5%
100%

Unplanned Corrective Breakdowns

Total

30 40

1.5 3

22.5 15
117.5

$11,500 $ 7,680
$60,180

Total cost reduction = $100,000 - $60,180 = $39,820 = 40%

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This understates the savings

because the really expensive work the Emergency breakdown repairs are much more than 3x the Planned work.
Total of Emergency should fall from 20% to 1% Cost ratio of Planned : Emergency is often as high as 1000:1
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Workshop Calculate the Savings

Tactic % of Total 20% 30% Cost Ratio 1 3 % x Cost = Units of work 20 90 Cost $ $10,000 $45,000

Before

Planned and PMs Unplanned Corrective

Breakdowns
Total Tactic Planned and PMs

50%
100% % of Total 70% 20% 10%

10

500
610

$250,000
$305,000 Cost $ $ $ $

Cost Ratio 1 3 10

% x Cost = Units of work

After

Unplanned Corrective Breakdowns

Total

100%

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Workshop Calculate the Savings

Tactic % of Total 20% 30% Cost Ratio 1 3 % x Cost = Units of work 20 90 Cost $ $10,000 $45,000

Before

Planned and PMs Unplanned Corrective

Breakdowns
Total Tactic Planned and PMs

50%
100% % of Total 70% 20% 10%

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500
610

$250,000
$305,000 Cost $ $35,000 $30,000 $50,000

Cost Ratio 1 3 10

% x Cost = Units of work 70 60 100

After

Unplanned Corrective Breakdowns

Total

100%

230

$115,000

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Objectives of Effective Tactics

To use the right blend of tactics to achieve the objectives for the asset Improve the use of knowledge by making sure we use the right tactics to do the right work at the right time The keystone for enhancing maintenance value and improving asset functionality
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Tactics and Assets - Benefits

Improve life cycle value of asset Reduce breakdowns and downtime Synchronize with operating cycle Improved operational capability Reduced energy consumption Reduced consumables Fewer trouble calls

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Tactics and Manpower - Benefits

Train to deliver the right skills for the right job at the right time Introduce technicians to new techniques in a planned and measured way Fewer panics, fewer emergencies, fewer callins Fewer HSE issues Less useless work

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Tactics and Spares - Benefits

Better forecasting of spares Fewer spares outages, less waiting for spares Move towards Just-in-Time purchasing Buy the right amount at the right time = not too much in stock, not too little Impact on cash flow
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Tactics and Costs - Benefits

Tactics selection includes assessing cost == overall lower cost Reduced manpower costs by reduced emergencies and breakdowns Reduced materials costs by right buying Reduced contractor costs by doing more in-house Reduced production losses by better equipment maintenance
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Workshop
Review the last five slides Select the most important Benefit for your organization in relation to one critical equipment Calculate the approximate savings Start to build an action plan to make it happen
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DataTrak

Octara 2013 DataTrak Copyright

Agenda
1. 2. 3. 4. What is a Strategy? What is a Tactic? Practical Implications of Selecting Tactics Why do we care about Tactics How Maintenance Tactics can be put into practice

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How to move to the RIGHT tactics

For each critical equipment
Review the work history For critical failures and repeat failures, analyse the Failure modes Develop a specific PM program to prevent these failures blending Condition-based with Time-based, considering also Redesign and Run to Failure Implement the PMs as Priority 1 and closely monitor their success (make sure they are actually done!) For each successive new failure, adjust the PMs

Do the same for expensive non-critical equipment and expensive repairs on non-critical equipment

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Converting Strategy into Tactics

To change tactics, we have to be successful at two levels 1. The Manager must be convinced to initiate and support the change 2. The User must be convinced to accept and make the change happen

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For the Manager/Supervisor.

Summarize what benefit the change will bring for the company and for him Provide data of the impact (history + forecasts, financial KPIs) Prepare detailed implementation plan (who, how, what and when) Identify the risks and how they will be counteracted
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For the Technician

Explain and show whats going to happen and why Explain whats in it for them Get them involved in the planning process Make sure you have a solid training plan Make sure they understand what happens if they dont get it first time Regular re-inforcement, re-visiting and rewards Re-train and re-train Above all, communicate and reward success
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For Operations
Explain and show whats going to happen and why
Impact on run time Impact on maintenance and operations schedule Impact on how the equipment will operate differently Impact on output

Explain the impact on the operators work Make sure you have a solid training plan Above all, communicate

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Our Strategy is to emphasize PMs --What if it doesnt work?

Fact: of every 100 PMWOs,

only 90% are issued

54% are signed off as complete 27% are actually done

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Workshop
If you are facing the situation shown on the last slide Identify the steps needed to solve the problem

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Personal development Plan Workshop: 1. Review what we have talked about today 2. Select at least three ideas that you like to implement or would like to know more about 3. Write each idea on the next slide and
1. Rate the benefit to you or to your business from 10 (highest) to 1 (lowest) 2. Rate the cost and difficulty of making it happen from 10 (easiest, least expensive) to 1 (most difficult, most expensive) 3. Calculate the score by multiplying Benefit by Cost/Difficulty 4. Priorities highest score is top priority
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DataTrak
Idea # Idea Benefit Cost/ Difficulty (10=High) (10=Low) Score Priority Bx C/D

1 2
Priority:

3
4 5

Top = >70
High = 50-69 Med = 30-49 Low = <30

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Example 1 Example 2

Build table showing Equipment Criticality Set measurement levels for Potential Failures

7 10

7.5 7

52.5 High 70 Top

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Questions??? Results Successes? Let me know!

Ben Stevens stevensb@kingston.net www.datatrak.ca +1 - 613-273-4366

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